- ORIGINAL NEWS
Here’s how Biden’s new student loan forgiveness plan differs from his first
- SUMMARY
Due to the Supreme Court rejecting his initial plan, President Biden has reintroduced a revised student loan forgiveness program.
This time, its focus is narrower, targeting specific groups of borrowers to potentially withstand legal challenges better.
The new plan targets those eligible for debt cancellation under existing programs who haven’t applied, have been repaying undergraduate loans for 20 years or more, or graduate loans for 25 years or more, and those who attended schools with questionable value.
Financial hardship is also a consideration, potentially including challenges with medical debt or childcare expenses.
Borrowers may receive up to $20,000 in unpaid interest forgiveness, regardless of income.
This plan aligns with Biden’s 2020 campaign promise to alleviate student debt’s burden.
However, critics argue it resembles the first plan and will not survive legal scrutiny.
As Missouri’s Attorney General threatened another lawsuit, it’s anticipated that legal challenges will follow the formal release of the new plan.
Higher education expert Mark Kantrowitz predicts lawsuits will emerge swiftly.
- NEWS SENTIMENT CHECK
- Overall sentiment:
neutral
Positive
“Biden has announced his student loan forgiveness do-over plan.”
“It hopes that move will help the new plan survive legal challenges.”
Negative
“Biden’s 2020 campaign promise to erase student debt was thwarted at the Supreme Court last June”
“Missouri Attorney General Andrew Bailey, a Republican, wrote on X that the president “is trying to unabashedly eclipse the Constitution”.”